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C2X, a new, independent company, backed by A.P. Moller Holding, the controlling shareholder of the A.P. Moller – Maersk, one of the world’s largest shipping and logistics companies, has unveiled plans to build large-scale green methanol production facilities.
The move follows a successful fundraising round, the company said.
C2X will develop green methanol from various pathways depending on specifics of the location, and is presently pursuing large-scale green methanol projects near the Suez Canal in Egypt and the port of Huelva in Spain, as well as other opportunities across several geographies.
By 2030, the ambition is to have a production capacity of more than three million tonnes per year from project opportunities in advantaged locations around the world.
The company plans to cater for a variety of customers in the chemicals and shipping sectors that need green methanol to deliver their own greenhouse gas emission reduction targets.
Industry reports such as Towards 2050 estimate that the annual demand for methanol could triple to some 300 million tonnes, with the majority being green methanol.
Replacing the existing use of fossil methanol with green methanol, and also meeting the growing demand from the use of green methanol as a fuel, requires a step change in the global production capacity of non-fossil methanol.
Green methanol is made from e-methanol, based on renewable energy, or bio methanol from agricultural and forestry byproducts.
“There is a pressing environmental requirement to scale the production of green methanol. C2X was founded to enable the energy transition in several hard to abate industries, including plastics, glues, textiles, and fuels. I am delighted to see the talented team who have joined C2X, and the strong interest from partners and prospective customers to support the venture’s important purpose and development,” says Robert M. Uggla, CEO of A.P. Moller Holding.
C2X is majority owned by A.P. Moller Holding with A.P. Moller-Maersk as a 20% shareholder, together providing a solid foundation for the company. A.P. Moller-Maersk has the intention to source green methanol from C2X.
Specifically, the company has just welcomed into the fleet its first methanol-powered containership and is set to receive 24 more green-methanol fuelled containerships in the upcoming three years.
A.P. Moller Holding has a track record of incubating new ventures, which support the energy transition, such as Innargi, a geothermal-based district heating company, established in 2017, and ZeroNorth, a SaaS platform used by more than 3,000 merchant ships to reduce emissions in ocean-based trade, established in 2020.
Both companies are experiencing strong customer traction and have attracted external capital to fast-track their development.
“Our focus is on developing our own large-scale projects and selective investments into attractive developments where we can help deliver those projects through access to our capital, expertise and commercialization,” said Brian Davis, CEO of C2X.
“We are building on our founders’ longstanding relations with authorities, customers, and suppliers around the world. The green methanol industry is nascent and new technologies are emerging, and we will work hard to drive down our production costs over time. However, there is a strong customer pull
and regulatory support so we are confident that, together with our partners, we can deliver at scale.”
Brian Davis has been appointed CEO of C2X and comes with 35 years of energy industry knowledge at Shell and other companies spanning the entire energy value chain, encompassing oil and gas, chemicals and electricity sectors and a track record of driving growth within complex business environments.
C2X has a team of 60 people with diverse backgrounds from chemicals, renewables, construction of mega-projects, shipping and finance. |
